Mon 24th Apr 2023 - Like-for-like sales see slowest growth so far this year as costs bite Like-for-like sales see slowest growth so far this year as costs bite: Like-for-like sales at Britain’s leading managed restaurant, pub and bar groups in March were 1.4% ahead of last year’s levels, the new Coffer CGA Business Tracker shows. It means the tracker—produced by CGA by NIQ in partnership with The Coffer Group and RSM UK – has now been in year-on-year growth for six successive months. However, March’s rate is the slowest of the first three months of 2023 and substantially below the UK’s current rate of inflation. Pressure on consumer spending, mixed weather and rail strikes all contributed to the challenges facing operators over the month. Pubs achieved like-for-like sales growth of 2.4% in March, while restaurants were 2.5% ahead of March 2022. The bars segment had a third consecutive month of negative figures, with sales down 13.2%. The tracker highlighted the ongoing revival in London since the end of covid-19 restrictions, with trading outpacing the rest of the country. Sales within the M25 were 3.1% ahead year-on-year, compared with 1.2% outside it. Karl Chessell, director hospitality operators and food EMEA at CGA by NIQ, said: “These figures emphasise that trading conditions in hospitality remain challenging and operators have to work hard to grab their share of sales. Consumers’ interest in eating and drinking out remains strong, but after adjustments for inflation it’s clear that in real terms, it is tougher for operators this year than last year. May’s three bank holidays will bring opportunities for strong trading, and there is cautious optimism that pressure on spending may ease as the year goes on. But the government’s reduction of support on energy bills from April, and increases in minimum wage levels, will add to the squeeze on operators, and real-terms growth will be difficult for some time to come.” Mark Sheehan, managing director at Coffer Corporate Leisure, added: “While top-line growth lags inflation across the board, many operators are looking to take advantage of better availability of property to build a selective pipeline of new sites. Much growth in sales is being derived from price increases rather than volume.”